Ethereum failed to continue above the $138 and $140 resistance levels against the US Dollar. As a result, ETH price declined below $130 and it is now trading in a bearish zone.
Ethereum is down more than 8% and it broke the $128 support against the US Dollar.
There was a key breakdown noted after the price was rejected near the $140 area.
There is a connecting bearish trend line forming with resistance near $129 on the hourly chart of ETH/USD (data feed via Kraken).
Bitcoin price is also down more than 5% and it is now trading well below the $6,000 level.
Ethereum Price Starts Fresh Decline
This past week, we saw a nice recovery in Ethereum above the $140 and $145 resistance levels against the US Dollar. ETH price even broke the $150 level, but it failed to continue higher.
A high was formed near $154 and the price started a fresh decline. There was a close below the $140 and $138 support levels, which later acted as a key hurdle for the bulls.
The price is now trading below the $130 support and the 100 hourly simple moving average. During the decline, there was a break below a major bullish trend line with support near $132 on the hourly chart of ETH/USD.
Ethereum tested the $120 support area and it is currently consolidating losses near the 23.6% Fib retracement level of the recent decline from the $137 swing high to $120 low.
On the downside, an initial support is near the $120 level. If the bears succeed in clearing the $120 support, the price could continue to move down. An immediate support is near the $112 level, below which the price is likely to decline towards the $105 support.
On the upside, Ethereum is facing many hurdles, starting with $130. There is also a connecting bearish trend line forming with resistance near $129 on the same chart.
Besides, the 100 hourly simple moving average is also positioned near the $130 level to act as a barrier for the bulls. A successful break above the $130 barrier could lead the price towards the $135 and $138 resistance levels in the near term. The main hurdle is now near $140, above which the price is likely to turn positive.
Hourly MACD – The MACD for ETH/USD is slowly reducing its last bearish slope.
Hourly RSI – The RSI for ETH/USD is currently correcting higher towards the 45 level.
Major Support Level – $120
Major Resistance Level – $130